The New Senate Climate Bill
The text plus descriptions are available here. I’m sure there will be a lot of discussion of the merits of the proposal on this blog and elsewhere. For now, I merely wanted to alert readers to a few key features.
Goals: Reduce GHCs to 95.25% of 2005 levels by 2013, 83% by 2020, 58% by 2030, and 17% by 2050.
Carbon Market: The cap-and-trade component targets firm that produce more than 25,000 tons of carbon pollution annually. (7,500 factories and power plants). Producers and importers of refined products will purchase allowances at a fixed price from the allowance auction. Industrial sources will not enter the program until 2016.
Introductory floor and ceiling prices are set at $12 (increasing at 3 percent over inflation annually) and $25 (increasing at 5 percent over inflation annually), respectively. Unlimited banking and a two-year rolling compliance period.
Preemption: Preempts the application of existing Clean Air Act provisions and of state cap-and-trade schemes (but apparently not other state programs.)
Trade measures. Phase in of a (reputedly WTO-consistent) border adjustment mechanism if no global agreement is reached.
UPDATE: Check grist for some early commentary.
Dan Farber has written and taught on environmental and constitutional law as well as about contracts, jurisprudence and legislation. Currently at Berkeley Law, he has al…READ more